Talbiya neighborhood Jerusalem (Wikipedia)
Gary Barnett, the American real estate developer and founder of Extell Development Company, is moving forward with his plans to develop sections of land in central Jerusalem that he acquired from the Greek Orthodox Church. The city of Jerusalem attempted to block the sale of the land because of all of the homes already there, but Israeli courts ruled against it.
Barnett bought a total of about 120 acres of land in these areas in 2023 for roughly $200 million. The problem is that the land was leased by the Israel Lands Authority and currently holds about 900 residential apartments. Some current tenants have been offered the opportunity to buy their apartments, but many say they cannot afford to do so and will be forced to leave their homes of many years.
Israeli publication Calcalist reported that Gary Barnett engaged directly with tenants facing potential eviction from Greek Church-owned properties in Jerusalem. During negotiations, said the report, he simultaneously employed a two-pronged strategy: warning residents that delaying legal interventions would ultimately harm their interests, while progressively sweetening his compensation offer. His negotiation tactics culminated in an unprecedented proposal that even included providing tenants with a complimentary apartment.
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According to Calcalist, Gary Barnett threatened the people unhappy with the deals offered them with prolonged litigation saying, “We will litigate or 5 years, 10 years, and at the end you will lose your apartment.”
Gary Barnett reportedly told some tenants in a meeting, “I want you all to send an email and call the mayor, and tell him that you have a good deal.”
In a complex real estate transaction, a businessman acquired property from the Greek Orthodox Church located in Jerusalem’s Talbiya, Rehavia, and Nayot neighborhoods. The land, currently hosting 900 residential units and public structures, is subject to lease agreements set to terminate in 2052, potentially leaving current residents facing displacement. However, a pending legislative proposal might offer a lifeline to the inhabitants and introduce complications for the property’s purchaser.
Gary Barnett is Chairman and Founder of Extell Development Company. Mr. Barnett founded the company in 1989, when he recognized the potential of the real estate market in the United States. He began acquiring real estate assets throughout the country, with a focus on New York City, and formed Extell Development Company. Today, Mr. Barnett and his team power one of the most recognizable full-service development companies in the country. From the outset, Mr. Barnett has been committed to delivering quality, value, and beauty. This passion originated with his international work in the diamond industry.
